Managing Māori land requires trustees who act responsibly, transparently, and in accordance with the Te Ture Whenua Māori Act 1993. When trustees fail in their duties, beneficiaries often ask: When can the Court remove a trustee of a Māori Land Trust?

At Core Legal Masterton Wellington, we regularly assist beneficiaries and trustees with Māori land governance issues, including trustee removal, trust disputes, and compliance with the law.

---

When Can the Court Remove a Trustee of a Māori Land Trust?

In situations where trustees fail to properly carry out their legal responsibilities, beneficiaries may apply to the Māori Land Court for removal. A common scenario involves trustees failing to provide financial reports, failing to open a trust bank account, or neglecting core administrative duties.

Under Section 240(1) of the Te Ture Whenua Māori Act 1993, the Māori Land Court may remove a trustee if:

Grounds for Removal

The Court must first identify one of the following strict criteria:

1. The trustee repeatedly refuses or fails to act.

2. The trustee becomes an undischarged bankrupt.

3. A corporate trustee has become insolvent.

4. The trustee is no longer suitable to hold office because of their conduct or circumstances.

The Court must then determine whether removal is desirable for the proper execution of the trust.

---

How the Court Assesses Trustee Unsuitability

A recent Māori Appellate Court decision confirms that the “unsuitability” test is broad, allowing the Court to consider a wide range of conduct. Examples in Section 240(3) guide (but do not limit) the Court’s assessment.

Even with the 2020 amendments, established principles still apply:

• Removal is a serious step and not taken lightly.

• Trustees must be properly notified before action is taken.

• Minor or technical breaches do not usually justify removal unless trust assets were put at risk.

• There must be evidence of real abuse, failure, or wrongdoing and no valid defence.

The Court of Appeal has emphasised that a trustee must have failed to perform their duties satisfactorily, not merely imperfectly. Performance is measured against the Act’s principles—especially the retention, use, and development of Māori land.

---

When Removal is Likely

Trustees may be removed when their failures expose the Trust to risk, for example:

• Not keeping or providing financial statements

• Failing to establish or manage a trust bank account

• Mismanagement of trust funds

• Failure to engage with beneficiaries

• Serious neglect of governance duties

In such cases, the Court is more likely to find that trust assets were put at risk, justifying removal.

---

Why Seek Legal Advice?

Removing a trustee is complex and process-driven. At Core Legal Masterton Wellington, we help beneficiaries understand their rights, prepare applications, and navigate all Māori Land Court processes.

Learn more about Māori land legal services here:
[Insert your internal link to Māori land services page]

---

Frequently Asked Questions (FAQ)

1. Can beneficiaries apply directly to remove a trustee?

Yes. Beneficiaries may apply to the Māori Land Court if they believe a trustee is failing in their duties.

2. Do trustees need to intentionally do something wrong to be removed?

No. Even unintentional failures may justify removal if trust assets are put at risk.

3. Will technical or minor breaches result in removal?

Usually not. The Court focuses on serious or harmful conduct.

4. Does the Court prefer replacing trustees instead of removing them?

The Court considers the trust’s welfare above all. If replacement supports proper administration, the Court may order it.

5. Should I seek legal help before applying for removal?

Yes. Trustee removal is a formal and sometimes contentious process. Legal guidance ensures the right grounds and evidence are presented.